The market for Islamic finance legal advice has been reignited by GE Capital’s offering of sukuk certificates. This offering is part of GE’s plan to diversify its alternative funding sources. “This transaction is strategically important for GE as it establishes yet another way of raising funds from an important investor base,” said GE’s senior vice president and treasurer Kathy Cassidy.

This sukuk is the first such offering issued by a major US company and is the first of its type to be used to finance aircraft leasing. “This issuance establishes our presence with a new and important base and demonstrates our commitment to these regions,” said Aris Kekediian, vice president and managing director, GE strategic development, GE Capital.

Islamic finance is proving to be a viable option for international companies to raise funds. “Over the last decade, Islamic finance has been very active in the Gulf region and Malaysia,” said David Cooke, partner at Conyers Dill & Pearman. “Our Dubai, Singapore and Hong Kong offices are all witnessing increasing interest from Western businesses in the Islamic market, as they look to tap new sources of investment using sukuk and other Islamic finance products. The GE Capital sukuk suggests renewed confidence in the market and follows other sukuk issuances this quarter.”

The success of this sukuk by GE Capital brings some much needed good news to firms in this sector following the controversy surrounding the sukuk issued by Dubai World’s subsidiary Nakheel which is due to be redeemed this month.

Related Stories:

• Dubai World woes yield work for firms
• Dubai World to have silver lining for restructuring law
• Latham's, Denton and Skadden advise on Qatar's bumper bond issue